Executive Order n° 2014-326 of 12 March 2014 reforming French insolvency proceedings was published in the Official Journal of the French Republic (Journal officiel de la République Française) on 14 March 2014.
Considered a priority by the Government, the objectives of this reform include, notably, favoring preventative measures and increasing the powers of creditors. Below are the principal provisions which will enter into force on 1 July 2014:
Amicable proceedings: mandat ad hoc, conciliation proceeding -
- Any clause in a contract which, as a result of the designation of a mandataire ad hoc or the opening of a conciliation proceeding, restricts a debtor’s rights or increases its obligations shall be deemed void.
- The order clarifies that new financing made available at any time during a conciliation proceeding will benefit from a “new money” superpriority or priming lien if the conciliation agreement is later approved by a court.
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